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Pilots, Air France negotiating way to end strike after airline scales back low-cost plans

  • Air France workers gather in front of the company headquarters as they demonstrate against the pilots strike, in Roissy, outside Paris, Wednesday, Sept. 24, 2014. Air France-KLM says it isn't ready to abandon a plan to transfer activities to a low-cost carrier, contradicting a government minister's claim. France's junior minister for transport, Alain Vidalies, said on RMC radio Wednesday that Air France was withdrawing the plan in the face a protracted strike by pilots. Banners read, 'Air France workers against the strike'. (AP Photo/Christophe Ena)

    Air France workers gather in front of the company headquarters as they demonstrate against the pilots strike, in Roissy, outside Paris, Wednesday, Sept. 24, 2014. Air France-KLM says it isn't ready to abandon a plan to transfer activities to a low-cost carrier, contradicting a government minister's claim. France's junior minister for transport, Alain Vidalies, said on RMC radio Wednesday that Air France was withdrawing the plan in the face a protracted strike by pilots. Banners read, 'Air France workers against the strike'. (AP Photo/Christophe Ena)  (The Associated Press)

  • A pilot and Air France workers gather in front of the company headquarters as they  demonstrate against the pilots strike, in Roissy, outside Paris, Wednesday, Sept. 24, 2014. Air France-KLM says it isn't ready to abandon a plan to transfer activities to a low-cost carrier, contradicting a government minister's claim. France's junior minister for transport, Alain Vidalies, said on RMC radio Wednesday that Air France was withdrawing the plan in the face a protracted strike by pilots. Posters read, 'No to this strike'. (AP Photo/Christophe Ena)

    A pilot and Air France workers gather in front of the company headquarters as they demonstrate against the pilots strike, in Roissy, outside Paris, Wednesday, Sept. 24, 2014. Air France-KLM says it isn't ready to abandon a plan to transfer activities to a low-cost carrier, contradicting a government minister's claim. France's junior minister for transport, Alain Vidalies, said on RMC radio Wednesday that Air France was withdrawing the plan in the face a protracted strike by pilots. Posters read, 'No to this strike'. (AP Photo/Christophe Ena)  (The Associated Press)

Pilots' unions and Air France are in talks aimed at ending an 11-day strike over cost-cutting measures.

The walkout has grounded more than half of the airline's flights, stranding passengers worldwide.

Air France offered Wednesday night to scrap a central part of a plan to shift most of its European operations to low-cost carrier Transavia.

That plan prompted the strike, because pilots see it as a way to outsource their jobs to countries with lower taxes and labor costs. Air France wants to restructure to stay competitive with budget airlines and growing Gulf carriers.

Guillaume Schmid of pilots' union SNPL said the unions responded with a counter-offer that was rejected in overnight talks with airline management, then submitted another counter-offer that is being discussed in negotiations Thursday.